"Struggles in Bridging USAID's Vacuum": Southeast Asian philanthropies increase their efforts
The United States' suspension of foreign aid, implemented through Executive Order 14169 under the Trump administration in early 2025, has had a profound and immediate impact on non-profits in Asia and their funding sources. This order effectively halted nearly all U.S. foreign aid, particularly non-military aid programs, resulting in the suspension of USAID projects worldwide, including in Asian countries.
### Impact on Non-Profits in Asia
Non-profits relying on USAID funding have experienced a sudden stop in disbursements and contract payments. Projects across South Asia, including in Afghanistan, Nepal, Bangladesh, and India, are under review and paused pending alignment with the new "America First" policy, disrupting ongoing humanitarian and development efforts.
Many organizations working on food security, clean water, public health, and agricultural support face crippling funding gaps. This has jeopardized the continuity of life-saving programs and essential services, as payments for contracts and grants remain delayed or unprocessed months after the freeze.
Although the immediate detailed impact on all Asian countries is variable, those with substantial obligated funding from the U.S. are notably affected. For example, Afghanistan had $886.5 million, Nepal $696.1 million, Bangladesh $487.5 million, and India $153.3 million in obligated USAID funding at the time of suspension. These funds are now subject to review, leaving non-profits uncertain about the future of their projects.
### Impact on Funding Sources
The halting of U.S. aid has strained non-profits' financial stability, forcing them to seek alternative funding streams or scale back operations. The withdrawal also risks creating a vacuum that could be filled by non-U.S. actors, such as Chinese or Middle Eastern entities, particularly in sectors like energy and infrastructure development.
U.S. contributions to international organizations and UN agencies, which often channel funds to regional non-profits, have been affected, diminishing indirect funding flows.
### Summary
The suspension of U.S. foreign aid has led to major funding cuts and project interruptions for non-profits in Asia, predominantly those dependent on USAID. This has had a cascading impact on humanitarian and development efforts across the region, threatening the viability of programs crucial for food security, health, and economic development. The pause in aid has forced non-profits to navigate funding uncertainty while highlighting broader geopolitical shifts in foreign assistance dynamics.
In 2023, Japan was the largest donor to Southeast Asia, providing a total of US$4.2 billion in development assistance. However, unlike USAID's grants, Japan's funding was mostly made through loan agreements and largely went into building rail infrastructure.
Some experts believe that some degree of US funding will return, but it will be much less and very transactional, compared to before. They also suggest that some Asian governments, beyond Japan, could step up and do more international giving in light of the decline in development budgets.
The role of multilateral development banks, like the World Bank and Asian Development Bank, is expected to become more pronounced to leverage declining capital from developed nations more catalytically. Strengthening local and community-based funding is also seen as crucial, as it can help ensure the sustainability of projects and services in the long run.
References: [1] Devex. (2025). Trump's foreign aid cuts hit hard in Asia. https://www.devex.com/news/trump-s-foreign-aid-cuts-hit-hard-in-asia-95858 [2] The Diplomat. (2025). The Impact of U.S. Foreign Aid Cuts on Asia. https://thediplomat.com/2025/04/the-impact-of-u-s-foreign-aid-cuts-on-asia/ [4] The New Humanitarian. (2025). U.S. aid cuts leave Asia's poorest at risk. https://www.thenewhumanitarian.org/news/2025/04/20/us-aid-cuts-leave-asia-s-poorest-at-risk
- The suspension of US foreign aid has caused a sudden halt in disbursements and contract payments for many non-profits, particularly those relying on USAID funding.
- Projects focusing on food security, clean water, public health, and agricultural support are grappling with funding gaps, jeopardizing the continuity of life-saving programs and essential services.
- The pause in aid has disrupted ongoing humanitarian and development efforts in South Asia, including countries like Afghanistan, Nepal, Bangladesh, and India.
- Afghanistan, Nepal, Bangladesh, and India had substantial obligated USAID funding at the time of suspension, with $886.5 million, $696.1 million, $487.5 million, and $153.3 million respectively, now subject to review.
- The halting of US aid has strained the financial stability of non-profits, forcing them to seek alternative funding streams or scale back operations.
- The withdrawal of US aid also risks creating a vacuum that could be filled by non-US actors, particularly in sectors like energy and infrastructure development.
- The future of these projects remains uncertain, as non-profits navigate funding uncertainty caused by the suspension of USAID.
- Japan was the largest donor to Southeast Asia in 2023, providing a total of US$4.2 billion in development assistance, but mostly through loan agreements for rail infrastructure.
- Some experts believe that US funding will return, but at a lesser scale and more transactional compared to before.
- Asian governments, beyond Japan, could potentially step up and increase international giving in light of the decline in development budgets.
- The role of multilateral development banks, such as the World Bank and Asian Development Bank, is expected to become more pronounced, leveraging declining capital from developed nations more effectively.
- Strengthening local and community-based funding is seen as crucial to ensure the sustainability of projects and services in the long run.
- The suspension of foreign aid has had profound implications for non-profits in Asia, hitting hardest on those dependent on USAID, with cascading effects on humanitarian and development efforts across the region.
- This has threatened the viability of programs crucial for food security, health, and economic development, highlighting broader geopolitical shifts in foreign assistance dynamics.
- In the realm of environmental science and corporate responsibility, the suspension of US aid could impact climate adaptation, carbon management, biodiversity conservation, and renewable energy projects, indispensable for the health-and-wellness of future generations.
- In an increasingly polarized world, understanding the social impact of policies and politics, such as Executive Order 14169, is critical for job-seekers in career development, personal finance, and wealth-management, as well as in education-and-self-development, policy-and-legislation, and general-news, to make informed decisions regarding investments, business strategies, and aviation. Skills-training in these areas is essential for a more well-rounded and informed citizenry, ready to face the challenges posed by climate-change, industry transformations, and the complexities of the globalized economy.
